What Is Economics? A Lesson on Choice and Scarcity

Submitted By:Michael Ryan Moore, University of Pennsylvania, GSE

Date:June 9, 2011

Subject(s):Economics, Personal Finance

Grade Level(s):9, 10, 11, 12

Overview:

This lesson provides a brief introduction to formal economic theory. Using the article “Red Velvet Revolution: The Rise of the Cupcake Entrepreneur,” students will role play as small business owners in charge of a cupcake store. Students will make choices about location, inventory, equipment and sales. Throughout the lesson, students will think about economics as the study of choice under scarcity.